Micro, small, and medium enterprises (MSMEs) are playing an increasingly active and essential role, and are set to become a key driver in leading Cambodia toward achieving its goal of graduating from Least Developed Country (LDC) status by the end of 2029, according to a message from Prime Minister Hun Manet.
On June 26, the Ministry of Industry, Science, Technology and Innovation, in collaboration with Khmer Enterprise, GIZ, UNIDO and the SME Bank of Cambodia, held the 2nd National Micro, Small and Medium Enterprises (MSME) Day in Phnom Penh Hotel.
The event, themed “MSMEs Readiness for LDC Graduation” was presided over by Minister of Economy and Finance Aun Pornmoniroth.
Industry minister Hem Vanndy read a message on behalf of Prime Minister Hun Manet. In it, the prime minister emphasized that the second celebration of this national day reaffirmed the government’s continued attention, commitment to support and appreciation for MSMEs, which are considered the backbone and driving force behind economic growth and social development.
MSMEs contribute to nearly all areas of the economy — by generating employment and income, reducing migration, supporting livelihoods, maintaining social stability and strengthening the private sector. The achievements and progress made by MSMEs over the past two decades have created a new sense of national pride, marked by Cambodia’s aspiration to graduate from LDC status by the end of 2029.
Manet also highlighted how Cambodia will soon face changes to trade preferences, official development assistance, and other privileges currently granted by friendly countries and development partners. These changes are expected to become more stringent, and in response, all stakeholders — especially businesses of all sizes — will need to enhance and modernise their capabilities, gain customer trust and stay competitive in today’s fast-changing, high-tech global economy.
“The 2029 milestone is no small challenge,” Hun Manet stated. “However, the Royal Government believes that Cambodia can achieve it.”
“On this basis, the graduation from LDC status at the end of 2029 should be seen by all of us, especially MSMEs, as an opportunity to seize and maximise benefits from — rather than something to fear in terms of threats or external competition. Drawing on the experiences of other fast-growing economies, only through preparedness, capacity building, entrepreneurship, innovation and compliance can we succeed in this transition,” he added.
Finance minister Pornmoniroth noted that in today’s uncertain global political and economic environment, MSMEs must urgently strengthen their production capabilities to advance more rapidly.
“MSMEs are numerous and serve as a strong backbone of the national socio-economic fabric. They have played, and continue to play, a vital role in job creation, income generation, poverty reduction, sustainable development, environmental protection and resilience,” he said.
According to the 2022 Cambodia Inter-Censal Economic Survey by the National Institute of Statistics under the Ministry of Planning, the Kingdom was home to 753,670 MSMEs, employing nearly 3 million people — 60% of them women. This sector contributes 63% of the country’s gross domestic product (GDP) and remains central to Cambodia’s ambition to build a more diversified and innovation-driven economy.
